Royal United Mortgage, a mortgage lender based in Indianapolis, Indiana, has been the subject of several lawsuits alleging various issues, including:
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Telemarketing violations: Royal United Mortgage has been accused of violating the Telephone Consumer Protection Act (TCPA) by making unsolicited telemarketing calls to consumers without their prior consent. The TCPA prohibits businesses from making telemarketing calls to consumers who are on the National Do Not Call Registry or who have requested not to be called.
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Deceptive marketing practices: Royal United Mortgage has been accused of engaging in deceptive marketing practices, such as making false or misleading statements about its mortgage products and services. For example, the company has been accused of overstating the benefits of its mortgage rates and down payment requirements.
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Unfair loan terms: Royal United Mortgage has been accused of offering unfair loan terms to consumers, such as high interest rates and excessive fees. The company has also been accused of engaging in bait-and-switch tactics, such as promising one mortgage rate and then offering a higher rate once the consumer is locked into the loan process.
Legal Claims
Plaintiffs in the Royal United Mortgage lawsuits have asserted various legal claims against the company, including:
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TCPA violations: Plaintiffs allege that Royal United Mortgage’s unsolicited telemarketing calls constitute violations of the TCPA. Under the TCPA, consumers are entitled to damages for each violation, which can range from $500 to $1,500.
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Deceptive trade practices: Plaintiffs allege that Royal United Mortgage’s deceptive marketing practices constitute violations of state and federal deceptive trade practices laws. Under these laws, consumers are entitled to damages for any harm they have suffered as a result of the company’s deception.
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Breach of contract: Plaintiffs allege that Royal United Mortgage’s unfair loan terms constitute a breach of contract. Under contract law, parties to a contract have a duty to act in good faith and to fulfill their obligations under the agreement.
Current Status of the Lawsuits
The Royal United Mortgage lawsuits are ongoing. Some of the lawsuits have been consolidated into class action lawsuits. The class action lawsuits are currently in the discovery phase, which is the process of exchanging evidence and information between the parties. A trial date has not yet been set.
Potential Outcomes
If the plaintiffs are successful in their lawsuits, Royal United Mortgage could be ordered to:
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Pay damages to consumers who were harmed by its conduct. This could include damages for TCPA violations, deceptive marketing practices, and unfair loan terms.
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Change its marketing practices to comply with the law. This could include stopping making unsolicited telemarketing calls to consumers without their prior consent and making accurate and truthful statements about its mortgage products and services.
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Change its loan terms to be more fair to consumers. This could include lowering its interest rates and reducing its fees.
Impact on Royal United Mortgage
The lawsuits could have a significant impact on Royal United Mortgage, both financially and reputationally. If the company is found liable, it could face substantial damages payments and legal expenses. Additionally, the negative publicity surrounding the lawsuits could damage Royal United Mortgage’s reputation and make its mortgage products and services less attractive to potential customers.
Consumer Considerations
If you are considering using Royal United Mortgage for your mortgage needs, it is important to be aware of the allegations against the company. You should carefully review any contracts with Royal United Mortgage before signing them and should compare the company’s mortgage rates and fees to those of other lenders. You should also be aware of your rights under the TCPA and deceptive trade practices laws and how to file a complaint if you have been harmed by Royal United Mortgage.
Conclusion
The Royal United Mortgage lawsuits raise important concerns about the company’s marketing practices, loan terms, and compliance with the law. Consumers should exercise caution when dealing with Royal United Mortgage and should be aware of their rights.
